8. Price Elasticity of Demand Let Q = hamburgers per month. Karl's demand equation for hamburgers is: %3D P = 24 -13Q > Calculate Karl's point price elasticity of demand when the price is $6. = a - b P AQ -3 %3D %3D AP Price ED = 24-1/3Q '/3Q =24-P %3D P = シ2Q %3D Q=72-3P %3D Q Q=-3p+ 72 = 24-
8. Price Elasticity of Demand Let Q = hamburgers per month. Karl's demand equation for hamburgers is: %3D P = 24 -13Q > Calculate Karl's point price elasticity of demand when the price is $6. = a - b P AQ -3 %3D %3D AP Price ED = 24-1/3Q '/3Q =24-P %3D P = シ2Q %3D Q=72-3P %3D Q Q=-3p+ 72 = 24-
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![0.
28.
9.
ine
Price
deman
1come e
mand
Mord
10. Arc and Point Price
Arthur's demand equation 1
a. Find
II
220
8.
8. Price Elasticity of Demand
Let Q = hamburgers per month. Karl's demand equation for hamburgers is:
P = 24 -3Q
Calculate Karl's point price elasticity of demand when the price is $6.
a -b P
AQ_-3
%31
24-1/2@
Price ED
+ d-
/2Q=24-e
Q=72-3P
%3D
3.
3.
Q=-3p+ 72
%3D
9. Income Elasticity of Demand
Maria's weekly demand for chocolate bars is a function of their price (P) and her income (M):
Q =Q(M, P) = M/4P - 5/P
a. Find and simplify an expression for Maria's income elasticity of demand as a function of M.
EM =
b. Calculate Maria's income elasticity of demand when her income is M = 30.
%3D
C. Calculate Maria's income elasticity of demand when her income is M = 120.
%3D
= E](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f061069-91e6-48ee-985f-f8d5b158cf5c%2F9d559249-12f0-4fff-ad68-49782538c2c3%2F2evftrc.jpeg&w=3840&q=75)
Transcribed Image Text:0.
28.
9.
ine
Price
deman
1come e
mand
Mord
10. Arc and Point Price
Arthur's demand equation 1
a. Find
II
220
8.
8. Price Elasticity of Demand
Let Q = hamburgers per month. Karl's demand equation for hamburgers is:
P = 24 -3Q
Calculate Karl's point price elasticity of demand when the price is $6.
a -b P
AQ_-3
%31
24-1/2@
Price ED
+ d-
/2Q=24-e
Q=72-3P
%3D
3.
3.
Q=-3p+ 72
%3D
9. Income Elasticity of Demand
Maria's weekly demand for chocolate bars is a function of their price (P) and her income (M):
Q =Q(M, P) = M/4P - 5/P
a. Find and simplify an expression for Maria's income elasticity of demand as a function of M.
EM =
b. Calculate Maria's income elasticity of demand when her income is M = 30.
%3D
C. Calculate Maria's income elasticity of demand when her income is M = 120.
%3D
= E
![II
12
16. Elasticity of a Linear Demand Curve
Suppose that the market demand for widgets is linear:
QD = a - bP
a. Derive a formula for the point elasticity of demand as a function of price (P).
ED
b. Find a simple expression for ED at each of the following points (label points in diagram):
P = a/b
(vertical intercept)
%D
P = 3a/4b
%3D
P = a/2b (midpoint)
%3D
%3D
P = a/4b
ED =
%3D
(horizontal intercept)
ED =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f061069-91e6-48ee-985f-f8d5b158cf5c%2F9d559249-12f0-4fff-ad68-49782538c2c3%2F90ouxq.jpeg&w=3840&q=75)
Transcribed Image Text:II
12
16. Elasticity of a Linear Demand Curve
Suppose that the market demand for widgets is linear:
QD = a - bP
a. Derive a formula for the point elasticity of demand as a function of price (P).
ED
b. Find a simple expression for ED at each of the following points (label points in diagram):
P = a/b
(vertical intercept)
%D
P = 3a/4b
%3D
P = a/2b (midpoint)
%3D
%3D
P = a/4b
ED =
%3D
(horizontal intercept)
ED =
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